Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698927075268.pdf (Micronesia, Federated States of)
EIGTHTEENTH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST REGULAR SESSION, 2013 C.B.

NO.

18-03 A BILL FOR AN ACT To appropriate the sum of $5,000,000 from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2013, to offset effects of the next five years of decrement of Compact Funding for the administration of the governments of FSM, Chuuk, Kosrae, Pohnpei, and Yap, and for other purposes.
BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: 1 Section 1.

Purpose.

Pursuant to section 216 of the 2 Compact of Free Association between FSM and the USA, the amount 3 of sector grant funding received by the FSM began decreasing in 4 2007 at the rate of $800,000 per year.
This annual decrease is 5 often referred to as “the decrement” and has been a cause of 6 alarm for government administrators as their funding has 7 decreased annually over the last five years and will continue 8 to decrease until 2023.
The only long-term solution for the 9 FSM and its component states is to become a fully self- 10 sustaining administration through fostering private sector 11 growth and implementing a sensible tax collection plan, which 12 generates sufficient funds without reliance on outside 13 assistance.
Yet, Congress is concerned that immediate anxiety 14 over the decrement could distract from state governments’ focus 15 on implementing the kind of long-ranging reforms needed to put 16 the FSM and its component states on the road to self- 17 sufficiency.

Thus, Congress is appropriating this one-time 18 infusion of money to allay fears over the decrement for the CBL 18-04 C.B.

NO.

18-03 1 next five years.


This $5,000,000 amount, given all at once and 2 up front, is to be stewarded wisely by states in accordance 3 with their internal legislative processes as they shepherd 4 their citizens through the next five years of Compact Funding 5 cuts.

The funds appropriated under this section shall be 6 apportioned according to the Compact Distribution Formula.

7 Section 2.
7 Section 2.

The sum of $5,000,000, or so much thereof as 8 may be necessary, is hereby appropriated from the General Fund 9 of the Federated States of Micronesia for the fiscal year 10 ending September 30, 2013, to offset effects of the next five 11 years of decrement of Compact Funding for the National and 12 State governments.

The funds shall be apportioned as follows: 1.

Kosrae State ........................... $ 545,000 2.

Pohnpei State ........................... 1,265,500 3.
Chuuk State ............................. 1,900,000 4.

Yap State ............................... 789,500 5.

FSM National Government ................. 500,000 Section 3.

Allotment and management of funds and lapse 19 date.

All funds appropriated by this act shall be allotted, 20 managed, administered and accounted for in accordance with 21 applicable laws, including, but not limited to, the Financial 22 Management Act of 1979.
The allottee shall be responsible for 23 ensuring that these funds, or so much thereof as may be 24 necessary, are used solely for the purpose specified in this 25 act, and that no obligations are incurred in excess of the sum 2 of 3 C.B.

NO.

18-03 1 appropriated.


The allottee of the funds appropriated under 2 section 1 of this act shall be the Governor of the appropriate 3 s tate for each of the respective states, or their designess, 4 and the President of the Federated States of Micronesia or his 5 designee for the FSM National Government portion.

The 6 authority of the allottee to obligate funds appropriated by 7 this act shall lapse on September 30, 2018.

8 Section 4.
8 Section 4.

This act shall become law upon approval by the 9 President of the Federated States of Micronesia or upon its 10 becoming law without such approval.

11 12 Date: 5/16/13 Introduced by: /s/ Wesley W. Simina Wesley W. Simina of 3